Post on Tuesday, December 11th, 2018 in Accounting
Coca-Cola is the most popular soft drink in the world. It’s sold almost everywhere, and its brand name is known in most languages.
The Coca-Cola Company (TCCC) manufactures and sells not only Coca-Cola itself, but also a wide range of other beverages, like Fanta, Sprite, water, juices, and energy drinks. The brand owes its success primarily to the product itself as well as its iconic marketing campaigns that position Coke as a drink with a fun and active lifestyle.
But there’s one factor a person might miss when explaining the wildly successful product: the Coca-Cola supply chain is one of the most wide-reaching, seamless operations in the world.
We have already discussed the success of supply chains at Amazon, Apple, Starbucks, IKEA, Walmart, and McDonald’s. In this article, we are going to take a look at the Coca-Cola manufacturing process from factory to fridge and see how the industry giant manages its coherent supply chain.
Before we start talking about the Coca-Cola supply chain, let’s take a look at the key milestones in the history of this legendary drink.
Coca Cola’s VP of Customer Logistics Wendy Manning once said the company is able to deliver a drink from a factory to a local store within 48 hours. The secret behind this impressive figure is local sourcing, meaning that most of the drinks are manufactured directly in the country where they are sold.
Coca-Cola has more than 900 bottling and manufacturing facilities across the world, and its factories have some of the world’s fastest production lines. It’s not just about the sheer number of facilities, though.
Coca-Cola Enterprises seamlessly integrates modern technologies into its supply chain. For example, it uses 3D printing to manufacture bottles and cans for its drinks.
Coca-Cola’s logistics team consists of more than 100 people who ensure the safe journey of each bottle from factory to fridge.
Over the past few decades, Coca-Cola has proven to be one of the most valuable and reliable suppliers for its retail partners. One example is that the company has been growing together with McDonald’s since 1955.
Helen Davis, VP of Coca-Cola Supply Chain in the US, conducts supplier innovation days. During these events, the company’s procurement and marketing teams present the company’s market needs while the suppliers also present their own latest innovations. The program also involves quarterly meetings with key suppliers, where a mutual performance review takes place.
Coca-Cola has strict quality requirements on its manufacturing practices. For example, Coca-Cola HBC, a bottling franchise partner of Coca-Cola Enterprises, requires quality, environment, and health safety certifications from its suppliers.
The beverage giant established the Global Supply Chain Council, which consists of subcommittees that focus on adhering to established Coca-Cola supply chain strategy. The Council has its own centralized portal where the employees and supply chain participants share their experiences and best practices.
The Coca-Cola Company provides a standard set of guidelines for all of its bottling partners and suppliers. As a result, most of the strategic decisions are centralized. The headquarters controls most of the bottling partner’s operations, so each bottling partner services the respective geographical area through a head office.
The bottler’s office works in tight collaboration with a regional office under the direct supervision of The Coca-Cola Export Corporation (TCCEC). The bottler’s head office connects the production plant with different distribution and sales centers across the world, forming a coherent supply chain.
All of these aspects make Coca-Cola supply chain management one of a kind.
In a nutshell, Coca-Cola beverages go through the following destinations in their journey:
Now let’s take a closer look at this journey.
Logistics is an integral part of any supply chain, and Coca-Cola’s logistics expertise definitely contributes to its supply chain success. Here are some of the logistics-related best practices implemented by Coca-Cola:
Coca-Cola’s manufacturing and supply chain management have inspired a lot of other businesses to be better.
But businesses today can scale growth at a much faster rate than you could back in the early 1990s thanks to new software and automation techniques. The takeaway here should be that the principles Coca-Cola grew from still apply, even if the technology that facilitated that growth is outmoded.
If you’re looking to speed your growth, consider trying out some inventory management software to help your production and supply chain become more efficient. Check out Dynamic Inventory’s key features and contact us today to schedule a live demo and see what we can offer.
Adam is the Assistant Director of Operations at Dynamic Inventory. He has experience working with retailers in various industries including sporting goods, automotive parts, outdoor equipment, and more. His background is in e-commerce internet marketing and he has helped design the requirements for many features in Dynamic Inventory based on his expertise managing and marketing products online.
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Tuesday, December 4th, 2018
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